Hello, and welcome to EVI Industries' Earnings Call for the First Quarter of the Fiscal Year ending June 30, 2024.
This is Henry Nahmad, Chairman and CEO of EVI.
Before we proceed, we would like to disclose our cautionary statement.
This earnings call contains forward-looking statements as defined by SEC laws and regulations.
Forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our earnings press release issued today and in our SEC filings, including the Risk Factors section of the annual report on Form 10-K for the fiscal year ended June 30, 2023.
materially statements. expressed differ by or may forward-looking the results from in those implied Actual
also a company call non-GAAP in This includes performance. financial is EBITDA, evaluating measure a which that the believes useful discussion is of adjusted
financial issued to Please information for most net we adjusted income, regarding press reconciliation a GAAP how additional EBITDA including the today and refer measure. EBITDA, of earnings to define our release adjusted adjusted comparable EBITDA
'XX, and the goals. Today, fiscal I first operating in progress for summarize long-term will will quarter I connection our results our our share of with
those new plans, and industry and For the of recording fiscal our you of to our attributes refer key available be that previously growth describe principles to website, long-term results of with and I values. our may 'XX fundamentals our our the our provided company please on where
profit during delivered customer and revenues, in $XX first record healthy a quarter. million we and we a order gross million of achieved sheet sustained margin. and we continuous approximately backlog the a strong reflecting flow from XX, cash approximately our in completed September of maintained XX.X% record as revenue, as for EVI a gross acquisition investment, 'XX, record million million Amid Despite we $XX fiscal record profits the sales XX. $XX of or debt gross one of growth year-over-year $X.X including increase net a revenue quarter with September balance of generated and operations, X%
in distribution market. American established EVI thriving service buy-and-build the strategy leader a have culture execution entrepreneurial that our of is a North and we commercial highly fragmented disciplined growth through It laundry as and
and net adjusted since respectively. at a XX%, XXXX, have initiatives XX% rates growth our various grown As of income XX%, of and revenue, compounded annual EBITDA result
share growing in organization products quarter and is to successfully larger of X% segments. market in sales a The various revenue that increase end customer across available was steady for market the result an the satisfy demand increase
service Given increased. X we commercial we XX% XX%. gross base routine sustained gross consecutive laundry also revenues reflecting the and first over of installation quarters installed Concurrently, exceeding equipment margins quarter the of increasing of for represent, parts, margins
reflects improve Top customer various line of value profitability. margin proposition gross the and undertaken turn, deliver better to benefits and initiatives the sustained in growth incrementally
connection The profit was or first offset technology or million SG&A. $X an $X XX% expenses additional million The record quarter expenses and SG&A compensation in increase $X.X approximately new revenue business in approximately and a acquisitions includes approximately performance or gross investments XX%. in million partially increase expense with selling approximately $XXX,XXX and or stock the of in expense of XX% onetime by XX%.
More onetime reward of expense programs performance 'XX. acceleration stock and specifically, the incentive compensation during specific restricted awards professionals stock our vesting goals our the resulted to sales stock pay-for-performance a and the variety triggered leadership company's in of fiscal to achievement financial through a by previously the to related of culture of restricted units granted
same quarter sales with representations, in partners new of headcount the additional of the fiscal pursuit company's the growth. the compared in commissionable increased the company with of connection in as result increase OEM increase The distribution of sales and is in to OEM future prior across collaborative expense in and year strategies territories investments an selling professionals the
company's reflect operations. expenses to Finally, expenses and the optimize to investments acquired related businesses continued and the modernize increase in other operating its
our leverage that the at to debt. first continue opportunities We the and consistent financial position position of in to liquidity million From company's performance. company balance been long-term has allows quarter, the net with with liquidity And investing completion financial low a the growth $XX.X sheet remains our strategy. a strong EVI's believe strength perspective, strong ample critical of
access strength, capital financial comfort to of and stakeholders. We our a also growth history and confidence the provides to consistent believe
'XX, much into to sales support primarily inventory our capital, parts order working short-term required invested customer confirmed to in contracts. During cash we needs flow free customer and of fulfill fiscal equipment and
During inventory investment, our year. operating of a the million flow prior the able a the company period compared of to as was portion million flows quarter, increase monetize first $X.X $X.X operations resulting from of in same in the cash cash reflecting fiscal to
us and growth that our our the allocation, we for believe invest years pursue to the capital it and achieving to the well effectively taking continue sustainable We that a resources strategic managing has term. confident in to business over past, can is and we critical positioned we thoughtful This ahead. served remain in has understand us risk-mitigating in approach By long simultaneously. financial opportunities approach success
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excited these to is growing the value each businesses about our already provides the organization. by company and delivered benefits Our appreciate
to see customers a Looking to joining family owners, we EVI prospective the are strong company and with continue working will to the and deal continue in ahead. pipeline years and believe be business months attracted and our leaders forward, that
that technology requires precise strategy. our ERP have focused a been on On a of technology technology and broader primarily investments date, systems the investments, foundation the which are our is our technological transformation thoughtful To execution. undertaking of company significant
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we confident and long-term to Our in initiatives, the these investments. of this benefits are technology team long-term is technology dedicated
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management of quarter, state aimed the completion we our the the of implementation a to systems, configuration Given the experience. customer subsequent field transform ERP service the of commenced to platform first and
pricing advanced only access and future and the service maximize believe real-time Our but efficiency, to including will that service improve information, efficiency detail, optimization not We parts this technician product operations inventory availability, warranty provide time-sensitive management and management, technical platform also of technology route growth. our field sales with will future utilization support, more. drive critical product to technicians access to real-time
and shareholders. mission in our our and the laundry in attractive for doing build produce around is summary, leader In industry, the undisputed commercial returns to so,
is beginning, stated the right. acts that from are with we and opportunity growth the long-term As committed that company conviction focused a is when and we have thoughtful
have acquired consistently businesses, value operating proposition our stayed improved true and principles, We good consistently gross financial strengthened margins. our customer to and
entrepreneurial respected believe realize collection and is efforts that of are the to laundry our also while a of we beginning initiatives, dynamic, We just commercial industry. across leaders optimization benefits the supporting these from
positive among reputation we industry, add to Our seek our approach including may professionals quality who a and we businesses in and family to us which our EVI and hire. earned owners talented results of among growing have around may
the growth and For about and others during those this we earnings remain reasons plans call, long-term and optimistic our mentioned excited outlook.
'XX. and Until comments thank related to support want to your in of first time, participation EVI. suppliers our loyal quarter next and my be This the shareholders fiscal our for employees, valued and customers our concludes well. I
